Information provision and consumer behavior: A natural experiment in billing frequency

A-Tier
Journal: Journal of Public Economics
Year: 2017
Volume: 152
Issue: C
Pages: 13-33

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this study, I estimate a causal effect of increased billing frequency on consumer behavior. I exploit a natural experiment in which residential water customers switched exogenously from bimonthly to monthly billing. Customers increase consumption by 3.5–5% in response to more frequent information. This result is reconciled in models of price and quantity uncertainty, where increases in billing frequency reduce the distortion in consumer perceptions. Using treatment effects as sufficient statistics, I calculate consumer welfare gains equivalent to 0.5–1% of annual water expenditures. Heterogeneous treatment effects suggest increases in outdoor water use.

Technical Details

RePEc Handle
repec:eee:pubeco:v:152:y:2017:i:c:p:13-33
Journal Field
Public
Author Count
1
Added to Database
2026-01-29